Teaching Economics Using Media & Active Learning

1. Teaching Economics Using Media & Active Learning October 19, 2013 CHARITY-JOY ACCHIARDO & G. DIRK MATEER

2. Music and Economics

3. Ben Stein,The Face of Economics? • Ferris Bueller’s Day Off • T-mobile commercial

4. Part 1 The Economic Way of Thinking

5. Scarcity

6. How do we decide what to do/buy?

7. How do you travel?

8. Think-Pair-Share How would you solve the previous example if you do not know the value of the person’s time? • Try to work this out yourself. (1 min) • When I give the signal, form a small group (2-3 people) and share your answers. Write up your solution.

9. The Road Not Taken – Robert Frost Two roads diverged in a yellow wood, And sorry I could not travel both And be one traveler, long I stood And looked down one as far as I could To where it bent in the undergrowth.

10. More practice! $200 • What is your opportunity cost • of attending the 1D concert? • $0 (applaud) B. $65 (bark) • C. $135 (cough) D. $200 (whistle) $135

11. Incentives

12. Incentives

13. Good intentions do not guarantee desirable outcomes! Unintended consequences

14. Marginal Thinking MB > MC

15. Making Decisions on the Margin The Diamond-Water Paradox Don’t confuse total value with marginal value!

16. Law of Diminishing Marginal Utility

17. Why do pop singers typically make more than top nurses? >

18. Efficiency

19. Part 2 Exchange and Trade

20. Voluntary Exchange The Trading Game

21. Trade Involves Opportunity Costs

22. Comparative Advantage & Trade

23. Comparative Advantage & Trade Should LeBron James clean his own house?

24. Where did your shirt come from? Poll

25. Discussion

26. Where do cottont-shirts come from?

27. Private Property Rights What Makes eBay Work?

31. The Fishing Game

32. Fishing Game (1) There are four contestants. Choose your champion! (2) The game is divided into two rounds: (a) The first 30 seconds: - gold jingle bells are worth $0.01. - purple jingle bells are worth $0.05. - blue jingle bells are worth $0.10. - silver jingle bells are worth $0.25. (b) The second 30 seconds: -gold jingle bells are worth $0.02. -purple jingle bells are worth $0.10. - blue jingle bells are worth $0.20. - silver jingle bells are worth $0.50.

33. Part 3 Supply and Demand

34. WHAT’S YOUR PRICE? What is the most you would pay to see a concert (favorite artist, best seats, etc…)?

35. The Law of Supply What amount of money would be necessary to get you to perform karaoke for us right now?

36. Equilibrium Experiment You may not use violence to force a trade Buy low, Sell high Grab a slip and start trading! You have 15 minutes Do not trade fractional units Questions? Just ask! Carefully record all transactions

37. The Market is Open Time Left: www.online-stopwatch.com

38. DECODING THE MYSTERY

39. The Hudsucker Proxy

40. Price Ceilings: A Thought Experiment

41. Think-pair-share

42. Part 4 The Role of Profits & Losses

43. SEINFELD – CAFÉ FAILURE

44. IT’S ALWAYS SUNNY IN PHILADELPHIA – Kitten MIttons

45. Entrepreneurship & Wealth Creation

46. Entrepreneurship & Wealth Creation

47. What do tennis balls have to do with economics?

48. Entry INTO Markets: Harbucks

49. I LOVE LUCY – The Diner

50. The Dynamic Nature of Change Allowing products to fail (or be replaced through innovation) allows for creative destruction to take place.